Pakistan’s transition toward a more reliable and cost-efficient energy system received another significant boost as the Asian Development Bank announced the approval of $330 million in financing for the Second Power Transmission Strengthening Project. The funding, confirmed in an official statement, reflects ADB’s continued commitment to helping Pakistan modernize its aging power infrastructure and enable greater integration of clean energy into the national grid. The new investment package seeks to address longstanding bottlenecks that have hindered efficient electricity flow across regions, ultimately supporting a more resilient and sustainable energy future for the country.
At the core of the initiative is the expansion of Pakistan’s national transmission network, specifically aimed at improving the north–south energy corridor, a critical channel for transporting renewable and hydropower-generated electricity. Under the project, a new 500 kilovolt transmission line spanning approximately 290 kilometers will be constructed. The development also includes major upgrades to existing grid infrastructure supplying densely populated load centers such as Islamabad and Faisalabad. These enhancements are expected to significantly improve the system’s capacity to transfer power, reduce congestion, and strengthen overall system stability.
According to ADB’s technical assessment, the completed transmission line will enable the movement of up to 3,200 megawatts of clean energy from hydropower facilities located in Pakistan’s northern regions. This capacity expansion is vital for reducing the country’s reliance on expensive imported fuels, which have long contributed to financial stress on the energy sector. By enhancing access to domestic renewable energy sources, the project supports Pakistan’s efforts to secure long-term energy affordability, lower carbon emissions, and diversify its energy mix.
ADB noted that the financing also plays a crucial role in supporting broader structural reforms within the power sector. The project contributes to ongoing improvements at the National Grid Company of Pakistan (NGC), an entity central to Pakistan’s energy transition. Institutional strengthening, operational modernization, financial capacity enhancement, and governance reforms form an essential part of the program’s goals. The bank emphasized that these improvements will help shape NGC into a modern grid operator capable of supporting emerging energy technologies and renewable integration at scale.
The financing package consists of a $285 million loan from ADB’s ordinary capital resources along with a $45 million concessional loan, offering Pakistan a blended facility aimed at easing financial pressures while ensuring continuity in critical infrastructure investments. Beyond physical development, the project includes components designed to enhance financial management systems, strengthen institutional capability, and widen public outreach. The initiative also integrates gender inclusivity measures to promote equitable participation within the energy sector workforce and community engagement programs.
ADB Country Director for Pakistan, Emma Fan, highlighted the significance of the project in the context of Pakistan’s long-term energy goals. She stated that the approval signals a joint commitment to improving access to clean, affordable energy while facilitating Pakistan’s shift toward a more sustainable and resilient power sector. She noted that the expanded transmission capacity will play a central role in reducing system inefficiencies and lowering overall electricity costs over time, contributing to economic stability and growth.
The project aligns closely with national frameworks such as Pakistan’s National Power Policy (2021), Vision 2025, and the country’s Nationally Determined Contributions (2021), all of which prioritize renewable energy integration, climate resilience, and reliable power distribution. By reducing technical losses, enhancing grid reliability, and supporting financial sustainability, the new infrastructure is expected to deliver both immediate and long-term value to the energy ecosystem.
ADB reaffirmed its continued collaboration with Pakistan and global development partners to strengthen governance, advance sector-wide reforms, and expand access to cleaner, more dependable electricity. As Pakistan navigates complex energy and economic challenges, the newly approved financing represents a key step toward reinforcing national infrastructure and securing future energy needs.
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